Abraaj Group buys KFC Turkey
Dubai-based Abraaj Group, a private equity fund that has invested heavily in Turkey and bought a minority stake in Netlog Logistics in July, is said to have bought KFC Turkey. According to the daily DUNYA, the contract on the sale of KFC Turkey, with its 104 restaurants owned by the US’ Yum Brands, was signed with the Abraaj Group in early November. Abraaj Group Turkey and Central Asia Region President Selcuk Yorgancioglu said “no comment” after DUNYA contacted him requesting information on the sale. According to our sources, the sales process was conducted by consultance firm Pragma.
Suzer Group sold KFC to Amer can Yum n 2013
Serving at more than 19,000 locations in 115 countries, KFC was brought to Turkey by Turkent AS, one of the Suzer Group companies, in 1989. In 2013, the Suzer Group, which held the franchise rights of that brand in Turkey, sold the business rights of fast food chains Pizza Hut and KFC to Yum Brands.
Since then, the US company had embarked on a rapid change process in the company’s organization and restaurants. In addition, KFC Turkey had started to grow in Turkey with the franchise system for the first time in 2015, and after this operation its number of branches in Turkey increased to 104. Over the next five years, it was aiming to open 400 new restaurants in Turkey.
A surpr se dec s on
However, Yum Brands had announced plans to sell KFC in Turkey and stated that the KFC brand would continue to grow through franchises in Turkey and elsewhere. According to industry experts, the decision taken by Yum Brands over its Turkey-based operations after these investments was welcomed as a surprise.
KFC’s 104 restaurants in Turkey are based in Istanbul, Ankara, Izmir, Bursa, Bolu, Kocaeli, Eskisehir, Mugla (Dalaman Airport), Balikesir, Denizli, Adana, Gaziantep, Canakkale, Kahramanmaras, Samsun, Hatay, Antalya, Sakarya, Kayseri, Diyarbakir and Mersin.
Meanwhile, Yorgancioglu, one of the partners of Abraaj Group, told Reuters last week that the company would complete at least one purchase in the first half of next year. He also stated that in 2018, Abraaj would have spent all of its $500 million fund established for purchases in Turkey, which was closed to new investors in 2016.